Carney, who won office in April on a platform promising to reset Canada’s approach to its southern neighbor, has been blunt about the challenges. “The era of seamless economic integration and unwavering security cooperation with the United States is over,” he warned in March, shortly after Trump slapped a 25% tariff on car imports.
Since taking office, Carney has sought to diversify Canada’s alliances, strengthening ties with the UK and France while working with Australia on Arctic defense projects. At home, however, his critics argue that meaningful progress with Washington will depend on tariff concessions.
The relationship has also been complicated by Trump’s repeated references to the idea of annexing Canada. Though Carney has previously said Trump agreed to stop suggesting Canada should be the “51st state,” the president revived the theme last week while promoting his “Golden Dome” missile defense system. “Why don’t you just join our country? Become the 51st state and you get it for free,” Trump quipped during a speech to military leaders.
Canadian negotiators insist Ottawa still has leverage. Trade minister Dominic LeBlanc told Parliament that U.S. businesses, governors, and union leaders are also feeling the pain of Trump’s tariffs. “That pressure will give us a path to reach an agreement,” he said.
Meanwhile, the broader North American trade pact is once again on the table, with Canada, the U.S., and Mexico holding preliminary discussions on its renewal ahead of its 2026 expiration.
Carney’s upcoming meeting with Trump will be only his second as prime minister. Their first encounter in May veered off course when Trump raised annexation in the Oval Office, calling a U.S.-Canada union “meant to be.” Carney quickly shot back: “Some places are never for sale.” Trump replied with a grin, “Never say never.”
Though Carney later suggested the annexation talk had cooled—telling CNN’s Christiane Amanpour that Trump “admires” Canada—the issue continues to hover over their relationship.